The EuroStoxx 50 added 0.30% on Tuesday, closing at 6,320.26 points and extending the index's gains from the previous week. CMC Markets analyst Andreas Lipkow said investors remain confident despite elevated oil prices and higher bond yields, betting on a possible de‑escalation in the Middle East and its positive impact on inflation and global growth.
Outside the euro area, Switzerland's SMI rose 0.22% to 13,912.19 points, while the UK FTSE 100 fell 0.45% to 10,636.71 points.
Lipvow described the latest economic data as mixed: industrial confidence is recovering from lows, but service‑sector sentiment lags expectations. He judged the overall picture sufficient to keep hopes of an economic rebound alive.
Technology stocks were the strongest performers, with semiconductor leader ASML gaining 4.2%. Lipkow noted that, despite recent doubts about growth, investment and valuations, the artificial‑intelligence narrative continues to attract investors, and price pullbacks are viewed as buying opportunities.
Infrastructure stocks lagged, led by French contractor Vinci, which slipped 2.4%. Other French infrastructure firms such as ADP and Eiffage also declined, pressured by the French government's plan to raise taxes on transport infrastructure in the 2027 budget.
Consumer goods shares came under pressure, as Lindt & Sprüngli fell 8.7% after the company cut its revenue forecast for the current year for the second time. Vontobel analyst Jean‑Philippe Bertschy warned that the downgrade erodes confidence in the company's forecasting ability, a key factor behind its high valuation.
Conversely, Swiss private‑bank Julius Bär surged more than 7% after the financial regulator FINMA concluded a long‑running investigation into the bank's handling of credit losses linked to the collapse of Austrian real‑estate group Signa. FINMA eased several measures, clearing the way for potential share buybacks.
Overall, the European equity market showed resilience, with sectoral divergences reflecting both macro‑economic optimism and company‑specific developments.
